Pengaruh Free cash flow, Kepemilikan Institusional, Profitabilitas dan Leverage Tehadap Kebijakan Dividen Tunai Pada Perusahaan Property dan Real estate yang Terdaftar di Bursa Efek Indonesia

Abstract

This research aims to examine and analyze the effect of free cash flow, institutional ownership, profitability and Leverage on dividend policy by using an approach multiple regression model. The proxies used to measure the financial elements are free cash flow, institutional ownership, Return on Assets and debt to equity ratio. The population in this research is property and real estate companies listed in Indonesia Stock Exchange for six years (2014-2019). Election sample procedure uses purposive sampling and the result are existed 5 companies that fulfill criteria so that amount of data studied by 30 data. The results of this research show that free cash flow, institutional ownership and profitability have a significant effect on dividend policy proxied by Dividend payout ratio. Leverage which is measured by debt to equity ratio hasn’t a significant effect on dividend policy. Free cash flow has a positive effect on dividend policy. Institutional ownership has a positive effect on dividend policy. Profitability which is measured by Return on Assets has a negative effect on dividend policy. The predictive ability of these variabel on dividend policy is 49,6% as shown by the amount of R square, while 50,4% is affected by the other factor which is not included in the research model.

Ownership Structure on Dividend Policy in The Indonesian Stock Exchange

“…Free cash flow has a positive and significant value to the dividend policy. The results of this study align with Wulandari et al (2019) that free cash flow has a positive and significant effect on dividend yields because when a company has free cash flow, it will make the existing management of the company pay dividends to reduce agency problems. These results are also consistent with Gunawan et al (2019) that large free cash flows will tend to increase agency problems, so it is necessary to distribute dividends as a control mechanism to reduce this.…”

Factors Affecting Dividend Policy in Indonesian State-Owned Enterprises (SOEs)

“…The results of research by Widiantari and Candradewi (2021), Rosyadi and Lusiani (2017), Irman et al (2019), Noviyanto (2016), Lohonauman and Budiarso (2021), Suhaimi and Haryono (2021), Wibowo and Lusy (2021), Kusuma et al (2018) can shows Free cashaflow has aapositive effect onadividendapolicy. However, in contrast to the results of research by Wulandari et al (2019) which states that free cash flow has a negative effect on dividend policy. Meanwhile, it is different from the results of research by Mangundap et al (2018), Hartono andMatusin (2020), Herdianta and Ardiati (2017), Putri and Anggrahini (2021), Octaviana et al (2016) whichistates that free cash flow has no effect on dividend policy.…”

Profitability and dividend policy: How does free cash flow explain this relationship?

“…From this context, the first ratio (assigned as FCF1) was formulated through the cash flows from operations and investing divided by total assets (Rochmah & Ardianto, 2020;Widyasti & Putri, 2021). Meanwhile, the second ratio (assigned as FCF2) was established by the cash flow from operations minus dividend and deflated by total assets (Suhartono, 2015;Wulandari et al, 2019). These calculations were considered a ratio representing free cash flow due to positively and significantly influencing dividend policy in previous literature.…”